Part M
HUMAN RESOURCES
WELFARE REFORM
Employment Assistance/Child Support Enforcement
Maryland has embraced welfare reform and child support enforcement reform by adopting a number of innovative programs over the last few years. The various welfare reform initiatives, in conjunction with a thriving economy, have led to a 55% drop in the Temporary Cash Assistance (TCA) caseload from January 1995 to December 1998. Responding to the needs of welfare recipients entering the workforce, 1998 legislation (Ch. 637) required the State to establish a Job Skills Enhancement Pilot Program to provide training to newly employed current and former TCA recipients in entry-level positions. With regard to child support enforcement, 1995 legislation (Ch. 491) established a Child Support Enforcement Privatization Pilot Program to improve child support enforcement collections in Baltimore City and a publicly managed demonstration site to compete against the privatized child support office. To foster competition, the law authorized performance incentive pay for employees in the demonstration site.
Senate Bill 720/House Bill 1059 (both passed) are a continuation of the General Assembly's efforts to reform Maryland's welfare and child support enforcement programs. This year's legislation is intended to enhance the State's ability to move more welfare recipients into the workforce, strengthen the quality of Family Investment Program administration of various cash assistance programs, and extend innovative child support enforcement programs. The TCA provisions require: (1) development and implementation of a plan for hiring welfare recipients by State agencies; (2) funding for the job skills enhancement pilot program to be sufficient to train 400 newly employed current and former recipients at a cost of up to $2,500 each; (3) development of a quality control process to reduce TCA payment errors; and (4) local departments of social services to submit plans with objectives for meeting the goals of the Family Investment Program. The child support enforcement provisions: (1) extend the termination date for the Child Support Enforcement Privatization Pilot Program to the year 2002; (2) clarify employment and retirement rights of former State employees hired by a private contractor; and (3) increase to six the number of local jurisdictions that may become child support enforcement demonstration sites to compete against the privatization contractor.
Income Disregard
Temporary Cash Assistance benefits are reduced when a welfare recipient begins to work. Many states boost the income of working families by disregarding a portion of earned income when calculating cash assistance benefits, thereby providing an incentive to work. In Maryland, 26% of a welfare recipient's income is disregarded when calculating the person's cash benefit. Senate Bill 445/House Bill 914(both passed) increase the income disregard for TCA recipients from 26% to 35%, and prohibit the increase in the disregard from being funded by an increase in Family Investment Program (FIP) general fund expenditures or expenditures from funds set aside in the Dedicated Purpose Fund to cover future welfare costs. The legislation also ensures that, subject to federal law and regulation, if a recipient's eligibility is extended due to the increased disregard, the extended period of cash assistance is not subject to federal and State time limits on the receipt of cash assistance. Senate Bill 445/House Bill 914 are in effect for three years and sunset on June 30, 2002.
By raising the amount of income disregarded in calculating welfare benefits, the bills increase the cash assistance available to welfare recipients engaging in work and result in a small number of current recipients retaining TCA eligibility for a longer time period than they otherwise might have. Thus, fiscal 2000 federal fund expenditures increase by at least $3 million, exclusive of additional child care subsidy costs. Federal funds are available to cover the additional costs as the State has accumulated $104 million in unappropriated federal Temporary Assistance to Needy Families Black Grant (TANF) dollars due to the declining TCA caseload and federal maintenance of effort requirements.
The use of federal TANF funds for cash assistance normally invokes the federal five-year lifetime limit on cash assistance. Recipients who, because of the disregard, stay on TCA for a longer time period are likely to receive a small monthly assistance payment while using up a portion of their lifetime limits. To avoid federal time limits, the legislation allows the Department of Human Resources to create a "segregated" program in which the population of TCA recipients who are engaged in work activities are placed.
Senate Bill 142/House Bill 184 (both passed) establish the Joseph Fund as part of the State Reserve Fund to set aside reserves to meet the emergency needs of economically disadvantaged Marylanders, especially in times of economic downturn. The Joseph Fund is named after the biblical character Joseph who prophesied seven years of plenty followed by seven lean years. During the fiscal crisis of the early 1990's, State resources available to meet the needs of low income citizens dwindled at the same time that the needs of economically disadvantaged citizens grew.
The Joseph Fund is to be used only to serve the needs of children, provide health services to individuals in need who are at or below 150% of the federal poverty level, and provide food or shelter assistance to individuals in need. The fund consists of: funds appropriated in the State budget; investment earnings; and moneys obtained from any governmental or private source. For fiscal 2001, the Governor is authorized to include an appropriation equal to the lesser of 40% of the unappropriated surplus at the end of fiscal 1999, or $10 million. For fiscal 2002 and subsequent years, the Governor is authorized to include in the State budget an appropriation to the Joseph Fund equal to the lesser of 20% of the unappropriated surplus at the end of the fiscal year two years prior to the fiscal year for which the appropriation is proposed, or $5 million. The bills also establish a Joseph Fund Board to advise the Governor on the management of the fund.
Currently the fiscal 1999 unappropriated fund balance is expected to be $38 million, although that amount could change by the end of the fiscal year. Therefore, $10 million could potentially accrue to the Joseph Fund in fiscal 2001, assuming a fund balance of $38 million. The amount of funds accruing to the Joseph Fund would vary with each year's State expenditures, reversions, and tax revenues, up to a maximum of $5 million per year in fiscal 2002 and subsequent years.
CHILD WELFARE WORKFORCE INITIATIVE
The fiscal 2000 appropriation for the Department of Human Resources (DHR) contains $14.1 million to implement provisions of the Child Workforce Initiative of 1998, Chapter 544, Acts of 1998 (HB 1133). Chapter 544 seeks to improve the quality of child welfare services through recruiting and retaining competent staff and reducing caseload to staff ratios for foster care, family preservation, and protective service workers. Specific provisions:
The budget includes funding to provide salary enhancements of two to three grades or $5,000 to $6,000 for caseworkers and supervisors who pass competency tests and to convert all contractual casework positions to permanent status. Additional funding is also provided to establish a pilot program which will reduce the caseload to staff ratios in Allegany and Caroline Counties and the northwest part of Baltimore City to eight families for every 1.5 staff. Under the pilot, a worker will stay with the same case as it progresses through the child welfare system rather than being assigned to a specific function such as protective services or foster care.
DEVELOPMENTAL DISABILITIES COMMUNITY SERVICES
Waiting List Initiative
The Developmental Disabilities Waiting List Initiative represents the commitment of the Governor and the General Assembly to reduce the backlog of 5,000 developmentally disabled individuals waiting for community-based services. Over a five-year period that began in fiscal 1999, the Developmental Disabilities Administration (DDA) in the Department of Health and Mental Hygiene (DHMH) is slated to receive $118 million in additional funds for the initiative. In fiscal 2000, DDA's appropriation increases by $23.5 million to cover the cost of services for 980 waiting list clients and $8.2 million for provider rate enhancements. These increases are in addition to the $34 million added to the base budget in fiscal 1999 for 2,177 waiting list clients.
As part of the initiative, DDA has broadened the range of services for waiting list clients. Under the principle of self-determination, clients and their families are encouraged to select services that maximize a client's independence and integration into the community. These services include residential programs, in-home support, and day programs. DDA reports that the initiative has received national attention and recognition. Other states are watching Maryland's progress in reducing the waiting list and implementing the principles of self-determination.
Fiscal Management/Waiting List Funds
In fiscal 1998, DDA had a $17 million surplus for the community services program. The surplus was the result of overestimated payments to community service providers and financial management problems that DHMH is in the process of resolving. A surplus of this amount is notable in light of the five-year Waiting List Initiative begun in fiscal 1999.
House Bill 68 (passed) addresses DDA fiscal management concerns and ensures that funds appropriated for the Waiting List Initiative continue to be available for that purpose. The legislation specifies the circumstances under which DHMH can recover payments to community service providers, stipulates the process and deadline by which DHMH must reconcile a provider's year-end report, and requires DHMH to conduct an audit of each private provider every four years. In addition, it prohibits unspent fiscal 2000 Waiting List Initiative general funds from reverting to the general fund. Therefore, any unspent funds must remain available for Waiting List Initiative expenditure in fiscal 2001. This could result in a potentially significant decrease in fiscal 2001 revenues accruing to the State general fund and a potentially significant increase in fiscal 2001 Waiting List Initiative general fund expenditures, depending on whether carried over funds are used to supplement or supplant fiscal 2001 expenditures.
ASSISTIVE TECHNOLOGY EQUIPMENT
House Bill 878 (passed) establishes the Assistive Technology Guaranteed Loan Program and an Assistive Technology Guaranteed Loan Fund in the Office for Individuals with Disabilities (OID) to provide assistance for the purchase of assistive technology equipment to enable individuals with disabilities to become more independent. The purpose of the loan fund is to provide guarantees for loans made by lending institutions for the purchase of assistive technology equipment and to subsidize interest rates of lenders. The fund is to consist of money appropriated by the State, income from investment earnings, fees for loan guarantees or subsidies of loan interest, and any other moneys made available to the fund. The total amount of a loan guarantee may be up to 100% of the loan. The fiscal 2000 budget includes $500,000 in general funds for the fund, contingent upon enactment of House Bill 878. In addition, a one-time federal matching grant of $500,000 could be available if the State appropriates an equal amount.
PARATRANSIT SERVICES
Senate Bill 247/House Bill 921 (both passed) repeal the June 30, 1999 sunset date on a provision of the law requiring the Maryland Department of Transportation (MDOT) to provide annual grants to offset the local costs of providing paratransit services that are complementary to fixed route service as required under the federal Americans with Disabilities Act (ADA). Paratransit services include ADA-eligible transportation for the elderly and disabled by a variety of vehicles, including contracted taxicab services. Paratransit service is used to accommodate trips for individuals who need to obtain medical treatment, including chemotherapy and kidney dialysis, to get to their jobs, or to meet other appropriate transportation needs.
The fiscal 2000 budget allowance assumed the continuation of the grant program and included $3,382,051, which the budget committees of the General Assembly subsequently deleted, citing the termination date of the program. However, the budget committees noted that if the termination date was repealed, MDOT could fund the program through a budget amendment. The level of funding in future years should remain relatively constant; however, by law it cannot exceed $4 million annually.
AFTER-SCHOOL PROGRAMS
New Program Established and Funding for Existing Program Enhanced
Approximately one million students are enrolled in either public or private schools in Maryland. Many of these children return to unsupervised settings once the school day concludes. According to a survey by the League of Women Voters, approximately 20% of children in some jurisdictions are left unsupervised after school hours. Depending upon the time of dismissal, children can be left alone for over four hours each day. The National Center for Juvenile Justice reported in 1997 that almost half of juvenile crime takes place between 2:00 p.m. and 8:00 p.m. each day and that after-school hours are the most frequent time when students are victims of crime and accidents. To address these concerns, the General Assembly passed Senate Bill 632/House Bill 6 which establish the Maryland After-School Opportunity Fund Program to provide funding to organizations with after-school programs for children. In addition, the fiscal 2000 budget contains $1,100,000 in new State funds to expand the Maryland After-School Initiative to 38 additional programs, serving approximately 1,000 children.
The Maryland After-School Initiative targets latchkey children and others who spend ten or more hours per week unsupervised after school. Programs receiving grants are operated by schools, churches, police athletic leagues, and nonprofit organizations. The initiative seeks to have a measurable impact on key behavior indicators such as school attendance, academic performance, disciplinary referrals, social skills, association with positive peers, and delinquency. Currently, approximately 1,200 children are participating in after-school programs across the State.
The newly created Maryland After-School Opportunity Fund will enhance State funding for after-school programs. The Department of Human Resources (DHR) will administer the fund as directed by an executive committee. The executive committee is comprised of the Governor, the State Superintendent of Schools, and the Secretaries of Human Resources, Health and Mental Hygiene, Juvenile Justice, and the Office for Children, Youth, and Families. The executive committee must consult with an advisory committee consisting of State officials, parents, students, a teacher, and community representatives. The Governor must include $10 million in the fiscal 2001 State budget for this program. The executive committee must report to the General Assembly by December 31 of each year on the implementation of the program.
The executive committee of the fund is also required to review and update the comprehensive plan of after-school opportunity programs each year. This plan must address: (1) the integration of public and private funding sources; (2) maximization of federal funding opportunities; (3) the consideration of special needs of developmentally disabled children, including needed services, supports, and appropriate provider training; (4) the promotion of the use of school buildings and local public transportation resources for after-school opportunity programs; (5) the use of local child care resource and referral centers for technical assistance purposes; and (6) the promotion of continued expansion of high quality after-school opportunity programs in the State. In any fiscal year, the total grants awarded to applicants operating within a particular county may not exceed 15% of the total grants awarded in that fiscal year.
RESIDENTIAL EDUCATIONAL FACILITIES
Residential educational facilities provide special education and related services, hold a certificate of approval issued by the State Board of Education, and provide 24-hour care and supportive services to disabled children in a residential setting, or are one of the following schools: the Benedictine School, the Linwood School, the Maryland School for the Blind, or The Maryland School for the Deaf. Current law does not require that residential educational facilities obtain a license from the Social Services Administration. Senate Bill 289/House Bill 271(both passed) require a residential educational facility to be licensed by the Social Services Administration for the residential portion of its programs as of January 1, 2000.
RATE SETTING
Chapter 609 of 1998 established a more competitive rate system for nonpublic educational services and residential and nonresidential child care by requiring the Subcabinet agencies to redesign the rate setting structure. The legislation designated the Maryland State Department of Education (MSDE) as the lead agency responsible for redesigning and implementing the rate setting structure. However, the Executive Branch interpreted the legislation narrowly and left the administrative responsibilities with the Office for Children, Youth and Families. Senate Bill 291(passed) designates MSDE as the agency responsible for implementing and administering the redesigned rate setting system, clarifies that all Subcabinet agencies will participate in the development and implementation of rates to the extent required by federal and State law, and specifies that an appeal as to the amount of the rates must be made to the Subcabinet.
CHILD AND DEPENDENT CARE TAX CREDITS
Senate Bill 631/House Bill 7 (both passed) allow tax credits for qualifying child and dependent care expenses beginning in the year 2000. For a more detailed discussion of Senate Bill 631/House Bill 7, please see Part B - Taxes.
CHILD CARE CENTERS - FIRST AID AND CPR
Current regulations do not require family day care providers and child care centers to have an individual in attendance who is certified in basic first aid training and CPR training appropriate for the children in attendance. House Bill 117 (Ch. 68) requires the Department of Human Resources to adopt regulations requiring each registered family day care provider to have an individual on staff who holds a current certificate indicating completion of approved basic first aid training through the American Red Cross or an equivalent program, and cardiopulmonary resuscitation (CPR) training through the American Heart Association or an equivalent program. Child care centers must have in attendance at all times, at least one individual with a current certificate who is responsible for supervision of children. Child care centers serving more that 20 children must have at least one certificate holder in attendance for every 20 children. These requirements become effective July 1, 2000.
FAMILY DAY CARE INSPECTIONS
Current law requires an inspection, usually announced, of family day care homes every two years and does not require the inspection to be done before a renewal registration is issued. House Bill 299 (passed) authorizes the Department of Human Resources to make unannounced inspections for each family day care center in any year that an initial or renewal inspection has not taken place. In addition to unannounced inspections, the bill also requires an inspection of a family day care center prior to issuance of an initial registration and prior to the issuance of any renewal registration.
CITIZEN REVIEW PANELS
In response to the recent, publicized death by abuse of a child, the General Assembly determined that independent citizen oversight of child protective services was needed in Maryland. Senate Bill 464/House Bill 958 (both passed) establish a series of review panels, namely the State Citizens Review Board of Children, the State Council on Child Abuse and Neglect, the State Child Fatality Review Team, and the Local Child Fatality Review Teams. For a more detailed discussion of Senate Bill 464/House Bill 958 see Part F - Courts and Civil Proceedings.